https://www.taxtmi.com/caselaws?id=338913 Valid Cenvat credit taken on inputs and capital goods when the final product was dutiable could not be recovered merely because the product later became exempt. The Tribunal applied the principle that such credit is indefeasible once validly availed, and that reversal is justified only where the credit is shown to have been illegally or irregularly taken. It also noted that there is no necessary co-relation between a particular raw material and the final product for valid credit. On the facts, the demand was sustainable only to the extent of the credit specifically shown as inadmissible in the notice, namely Rs. 2,27,130, and the remaining recovery and penalty were set aside. en-us Mon, 16 Jan 2017 00:00:00 +0530 Sat, 04 Mar 2017 12:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338913 Valid Cenvat credit taken on inputs and capital goods when the final product was dutiable could not be recovered merely because the product later became exempt. The Tribunal applied the principle that such credit is indefeasible once validly availed, and that reversal is justified only where the credit is shown to have been illegally or irregularly taken. It also noted that there is no necessary co-relation between a particular raw material and the final product for valid credit. On the facts, the demand was sustainable only to the extent of the credit specifically shown as inadmissible in the notice, namely Rs. 2,27,130, and the remaining recovery and penalty were set aside. Case-Laws Central Excise Mon, 16 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338913